Me and my boyfriend have just bought a house. The mortgage is gonnabe about 700 a month and he pays about 700 a month on all his debts which he accumulated whilst he was at university. He only gets paid 1400 a month and we have one child and one on the way. Now, you may think buying a house was silly but....our mortagage advisor told us to get a mortgage and then consolidate his debts because consolidating them first would give him bad credit and we would then be unable to buy a property. Im just wondering whether debt consolidation is an easy process though and something which most people are accepted onto. Im worried about being responsible for a home and stuck with his debt as well???!!! Has anyone been in this situation?
2007-03-22 01:02:57 · 8 answers · asked by Anonymous in Education & Reference ➔ Financial Aid
I don't believe there is any reputable mortgage company that is going to loan money to purchace a house when monthly payments BEFORE the next child arrives are 100% of income.
(Is ANYONE reading the question? His payments are going to equal his entire income before consolidation!)
Debit consolidation to pay down the interest rates and get a single payment on the 700 might be a good idea.
2007-03-22 01:08:52 · answer #1 · answered by wizjp 7 · 1⤊ 0⤋
Consoldiation is not the way to go unless you get an excellent interest rate and do not have to spread it over a ridiculous number of years.
Non-priority debts such as credit cards, CCJ'S and non secured loans can still apply to the court for a charge on your property subsequently turning them into secured debts. Seek advice from the citizens advice bureau to reduce your non-priority debts , this is possible when you have completed a financial statement. In April the law will change with regard to time orders so if you have a silly rate of interest on any of your debts you can ask the court for a time order and they have the power and discretion to cut back the interest to 0% if desired, effectively reducing your debt.
2007-03-23 12:47:43 · answer #2 · answered by minxxywitch 1 · 0⤊ 0⤋
Me and my partner have just taken an IVA and if you have a total of 15,000 in debt you can take one out they take all your debts consolidate them to one payment interest is frozen you pay back over five years any debt left after that is wiped clean.we where paying about the same as you a month now we only pay 300 a month for the next five years.dont go into it lightly though at the end of the five years our credit rating will be very low and for the duration of the five years you cant take out any credit like Argos card etc..but if your really struggling and really cant afford the debts then i say go for it,we with a government company called Blair endersby the number for it is 08000961661.if you are going to go down this road i highly recommend these there very friendly and deal with the creditors for you.xx
2007-03-23 00:57:38 · answer #3 · answered by deliciousde 4 · 0⤊ 0⤋
be very careful regarding debt consolidation. the main danger is the interest paid to these sharks. they pray on deperate people so rip you off.
The way they do it is by making you pay back a % of the full amount for the entire term of the loan.
ie you borrow £20,000 and you have to pay back 10% interest on it - that 10% will be £2000 a month even when you have paid back loads of the money.
You may owe them only £5000 after several years but the interest will still be for £20,000.
2007-03-22 01:09:15 · answer #4 · answered by Anonymous · 1⤊ 0⤋
Your entitled to working family child tax! so claim it, that will help you out. Consolidation loans do work but be careful who you go with and look at the best interest rates, theres plenty out there. No matter what you do in life you will always have debt of some sort, i know no one who hasn't, manage your money and budget, you'll be fine. Better to buy your own home than rent.
2007-03-22 01:10:24 · answer #5 · answered by Debbie 4 · 0⤊ 1⤋
Payday loans oftentimes have an fairly severe interest value, and is purely useful in case you prefer it desperately for an fairly short volume of time, and are helpful which you will pay the interest value on the indoors maximum loan
2016-10-19 08:09:41 · answer #6 · answered by ? 4 · 0⤊ 0⤋
It depends on how you are going to cosolidate the debts.
If you are going to get a loan to do it then its easy, it is sometimes processed as quickly as a couple of days.
If you are going to get an IVA then it could take weeks to set up.
2007-03-22 01:06:37 · answer #7 · answered by OriginalBubble 6 · 1⤊ 1⤋
Lisa
Get ahold of this guys book...Dave Ramsey - he can tell you how to get out of debt. You can also go to his website and listen to him on the radio. He has some great ways to get out of debt.
http://www.daveramsey.com/radio/home/
2007-03-22 01:56:50 · answer #8 · answered by Curly 4 · 0⤊ 1⤋